Which of the Following Is Likely to Lead to a Decrease

question 4

Multiple Choice

Which of the following is likely to lead to a decrease in aggregate demand?

• A)a decrease in interest rates
• B)a decrease in national income
• C)an increase in national income
• D)an increase in government spending on goods and services.

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Definitions:

Accounting Profit

The financial gain calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Own Capital

Resources or funds that an individual or company owns outright without any debt obligations.

Economic Profit

The deviation between complete financial gains and all-encompassing charges, covering both transparent and obscured costs.

Normal Rate

Often refers to a benchmark interest rate considered typical or average within an economic environment or financial product.